FAR LIMITED — Investor Presentation 2015

Jul 15, 2015

Investor Presentation Noosa Minin & Ex loration Conference g p

16-17 July 2015

==> picture [148 x 64] intentionally omitted <==

FAR snapshot

• Mid cap E&P: FAR e ntered the ASX 300 Index in March 2015

• Strong balance sheet. Cash balance A$52.5m (March qtr). No debt

• Africa focused: Senegal, Guinea Bissau, Kenya and Australia

• FAN-1 and SNE-1: New basin opening oil discoveries in Senegal

• World’s largest oil discovery: SNE rated No. 1 in 2014 (IHS CERA)

• Good economics: SNE is low break even (IRR 10% @ US$45/bbl)

• Quality Senegal partners: ConocoPhillips, Cairn Energy, Petrosen

• New drilling 4Q 2015: Strong value addition expected from three wells targeting low risk SNE appraisal and near field exploration

==> picture [148 x 64] intentionally omitted <==

FAR performance

==> picture [711 x 413] intentionally omitted <==

----- Start of picture text -----

Capital Structure
7 Oct 14:
FAN-1 oil discovery ASX Ticker FAR
gross oil interval of 10 Nov 14:
$0.16 more than 500m, SNE-1 oil discovery; Share price (13 July 2015) A$0.08
net oil pay 29m 95m gross oil column,
net oil pay 36m Market cap (13 July 2015) A$255M
$0.14 Cash (31 March 2015) A$52.5M
Average broker rating / target Buy, A$0.21
$0.12
27 Aug 14:
$0.10 FAN-1 recovers $0.08
oil samples +100.0%
$0.08
$0.06
$0.04 0.66%
$0.02 (45%)
$0.00
May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15
FAR ASX 100 (rebased) Brent (rebased)
Source: Company filings, IRESS.
(A$ per share)
----- End of picture text -----

3

FAR in Africa

• A wide portfolio with significant African experience

• Focus on Senegal and NW Africa following discoveries

• as

• FAR has strong relationships one of longest standing oil companies in Senegal

SENEGAL

FAN-1 and SNE-1 oil discoveries, extensive running room

SNE look-a-like structure, Sinapa oil field

KENYA

Large equity position in emerging basin

• Senegal is peaceful and has been a democracy for 198 years

• Senegal achieved 4.7% GDP growth in 2014

• Senegal S&P sovereign credit rating 'B+/B‘ (stable outlook)

4

Senegal

• PSC area 7,490 km[2] : Sangomar, Sangomar Deep and Rufisque blocks

• US$196M farm-out: Two successful wells plus US$10M in cash to FAR

• FAN-1 and SNE-1: New world class oil discoveries highlight emerging basin

• Quality partners: FAR 15%, Cairn Energy (Operator 40%), ConocoPhillips (35%) and Petrosen (10%)

• Tortue-1: New gas discovery straddles Mauritania-Senegal border with a estimated gross resource of 5-12 Tcf

==> picture [80 x 81] intentionally omitted <==

RUFISQUE, SANGOMAR & SANGOMAR DEEP OFFSHORE

16.7% paying interest, 15% beneficial interest Operator: Cairn Energy PLC

==> picture [342 x 358] intentionally omitted <==

----- Start of picture text -----

Kosmos
Tortue-1
discovery
----- End of picture text -----

5

==> picture [694 x 492] intentionally omitted <==

----- Start of picture text -----

FAN-1 and SNE-1 seismic section/schematic
FAN-1 SNE-1
1430m WD 1150m WD
W E
Buried Hill
Shelf Edge
Fan
Source
Kitchen
Oil Migration Oil Traps
----- End of picture text -----

FAN-1 and SNE-1 seismic section/schematic

6

FAN-1 oil discovery

• Proved prolific source: High quality light oil in a stratigraphic stacked Cretaceous sand sequence

• Oil gravity 28-41 degrees API

• Gross oil bearing interval >500m with no oil-water contact encountered (29m net)

• Operator gross oil (STOIIP) in place

• – P90: 250 mmbbls – P50: 950 mmbbls – P10: 2,500 mmbbls

• Proved oil migration model up dip and helped de-risk SNE pre-drill

==> picture [80 x 81] intentionally omitted <==

==> picture [387 x 304] intentionally omitted <==

7

SNE-1 oil discovery

• World’s largest oil discovery in 2014 (IHS CERA)

• Very good reservoir in a well defined Cretaceous structural trap

• Oil gravity 32 degrees API

• Gross oil column of 96m (36m net) with a gas cap

• Contingent recoverable resource

• P90: 150 mmbbls

• P50: 330 mmbbls – P10: 670 mmbbls

• Initial focus of the joint venture evaluation work program

==> picture [80 x 81] intentionally omitted <==

==> picture [389 x 318] intentionally omitted <==

8

SNE top reservoir

• Strong conformance of amplitude with structure

• Pre-drill estimate 154 mmbbls (gross) (best estimate prospective resource)[*]

• Pre drill estimate at amplitude anomaly came from gas cap only

• Post drill field estimated to be significantly larger after discovering a 96m gross oil column

Pre drill field outline Gas-Oil contact Oil-Water contact

==> picture [80 x 81] intentionally omitted <==

==> picture [363 x 371] intentionally omitted <==

*Reference FAR ASX releases dated 27 Feb 2013, 5 Feb 2014, 11 Mar 2014, 13 Apr 2015 best estimate, gross, unrisked contingent resources, 100% basis, oil only

9

SNE appraisal drilling

• Aimed to achieve declaration of commerciality to prove minimum economic field size (MEFS)

• Operator MEFS ~200mmbbls

• Low risk appraisal : 1C resource is 150mmbbls, 2C resource 330mmbbls

• Flow testing (DST’s) and coring

• Each well may take ~40 days to drill plus testing / coring of ~2-4 weeks

==> picture [80 x 81] intentionally omitted <==

==> picture [349 x 336] intentionally omitted <==

200mmbbls 350mmbbls

250mmbbls 300mmbbls

400mmbbls

600mmbbls

*Reference FAR ASX releases dated 27 Feb 2013, 5 Feb 2014, 11 Mar 2014, 13 Apr 2015 best estimate, gross, unrisked contingent resources, 100% basis, oil only

10

SNE economics*

• SNE has robust economics

• Base assumption is 330mmbbls (50mmbbls net)*

• CAPEX $17-26/bbl

• OPEX $5-15/bbl

• US$10 NPV/bbl at US$70 oil

• SNE likely to be standalone at >200mmbbls*

• Brent futures : ~US$70/bbl

• Macro headwinds (soft oil price, poor sentiment, lack of success in sector)

==> picture [431 x 495] intentionally omitted <==

----- Start of picture text -----

18
NPV/bbl (US$)
16
14
12
10
8
6
4
2
0
US$90/bbl @ 2014 costs US$70/bbl@ 10% cost US$50/bbl @ 20% cost
reduction reduction
Project IRR (%)
40%
35%
30%
25%
20%
15%
10%
5%
0%
US$90/bbl @ 2014 costs US$70/bbl @ 10% cost US$50/bbl @ 20% cost
reduction reduction
NPV/bbl at FID
IRR at FID
----- End of picture text -----

• Source: Cairn Energy estimates (refer Cairn Energy Capital Markets Day presentation 11/05/2015)

11

The shelf and fan area

==> picture [495 x 433] intentionally omitted <==

----- Start of picture text -----

FAN-1 SNE-1
Sirius Bellatrix
Soleil
Central
South
Fan
Fan
----- End of picture text -----

==> picture [80 x 81] intentionally omitted <==

12

Senegal prospects

• Extensive prospect inventory

• 1.5 bn barrels of gross unrisked prospective resources mapped on high quality 3D seismic

• Two distinct play types on shelf

• Buried Hills (e.g. Bellatrix)

• Shelf Edge (e.g. SNE look-a-likes)

• Minimum economic field size for a standalone FPSO hub is ~200 mmbbls (Operator estimate)

• Tie-back range is 35-40km radius for prospects with ~75 mmbbls or more (Operator estimate)

==> picture [80 x 81] intentionally omitted <==

==> picture [389 x 397] intentionally omitted <==

----- Start of picture text -----

77mmbbl []
74mmbbl []
204mmbbl []
141mmbbl []
Tie 168mmbbl []
back
radius
101mmbbl []
----- End of picture text -----

*Reference FAR ASX releases dated 13 Apr 2015 best estimate, gross, unrisked prospective resources, 100% basis, oil only

13

Senegal undrilled prospect inventory[*]

==> picture [80 x 81] intentionally omitted <==

Prospect Area (km2) Target Reservoir Low Estimate (mmbbls)	Best Estimate (mmbbls)	High Estimate (mmbbls) FAR Working Interest Unrisked Best Estimate Prospective Resources net to FAR (mmbbls) Chance of Discovery Risked Best Estimate Prospective Resources net to FAR (mmbbls)
Sirius 79 Albian 83	204	474 15% 30.6 52% 16.0
Soleil 88 Albian 47	101	209 15% 15.1 43% 6.5
Bellatrix (BH2) 33 Cenomanian 69	168	356 15% 25.1 49% 12.2
Sabar (BH3) 46 Cenomanian 61	141	293 15% 21.2 37% 7.9
Lamb-Ji (BH4) 21 Cenomanian 33	74	154 15% 11.1 33% 3.7
Ramatou (BH5) 15 Cenomanian 32	77	176 15% 11.6 33% 3.8
Central Fan 174 Turonian 101	338	879 15% 50.6 19% 9.8
South Fan 114 Turonian 78	258	654 15% 38.6 19% 7.5
Alhamdulilah 88 Turonian to Atian 44	140	321 15% 210 37% 78
p		. .
Total	1500	225 75

Operator chance of discovery significantly higher than FAR: Bellatrix 80%, Sirius 54%, Soleil 67%

(refer Cairn Energy Capital Markets Day 11 May 2015)

*Reference FAR ASX release dated 13 Apr 2015 best estimate, gross, unrisked prospective resources, 100% basis, oil only

14

N

Bellatrix prospect

• Buried Hill play

• Strong amplitude response

• Amplitude conforms to structure

• Prospect overlies northern extent of SNE field

==> picture [311 x 168] intentionally omitted <==

==> picture [80 x 81] intentionally omitted <==

Bellatrix unrisked prospective resources* Low estimate 69 mmbbls Best estimate 168 mmbbls High estimate 356 mmbbls

S

==> picture [369 x 238] intentionally omitted <==

*Reference FAR ASX releases dated 13 Apr 2015 best estimate, gross, unrisked prospective resources, 100% basis, oil only

15

==> picture [80 x 81] intentionally omitted <==

Sirius prospect

==> picture [468 x 383] intentionally omitted <==

----- Start of picture text -----

S N
A
Sirius
prospect B
SNE Field
A B
Up-dip seal, proven
to work at SNE-1
----- End of picture text -----

• Shelf edge play

• “Lookalike” to SNE

• Amplitude conforms to structure

• On trend with the SNE field

Sirius unrisked prospective resources* Low estimate 84 mmbbls Best estimate 204 mmbbls High estimate 474 mmbbls

*Reference FAR ASX releases dated 13 Apr 2015 best estimate, gross, unrisked prospective resources, 100% basis, oil only

16

Senegal project timetable

==> picture [80 x 81] intentionally omitted <==

==> picture [703 x 327] intentionally omitted <==

----- Start of picture text -----

Evaluation Exploitation
DOC for SNE field
2014 2015 2016 2017 2018
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Drilling of FAN-1/SNE-1
FAN-1/SNE-1 data analysis
Well planning
Reprocessing existing 3D seismic
Drilling of SNE-2, SNE-3, Bellatrix-1
Drilling (contingent wells)
Acquire/process new 3D seismic
Engineering and design
----- End of picture text -----

==> picture [219 x 105] intentionally omitted <==

==> picture [43 x 96] intentionally omitted <==

17

*Source http://www.ocean-rig.com/fleet/rig_availability

2015 revealing the prize

• SNE was the number one oil discovery worldwide in 2014

• Appraisal of SNE starts 4Q 2015

• 100% success rate offshore Senegal (2 new oil field discoveries from 2 exploration wells)

• Firm commitment to drill two low risk SNE appraisal wells and one new exploration target

• • Undrilled exploration prospects with >1.5bn bbls potential have de-risked through success

• JV committed to evaluation work program

• FAR committed to finding more elephants lurking under Senegalese waters

==> picture [165 x 177] intentionally omitted <==

==> picture [148 x 64] intentionally omitted <==

Contact us

Level 17, 530 Collins Street Melbourne VIC 3000 Australia T: +61 3 9618 2550

www.far.com.au

==> picture [148 x 64] intentionally omitted <==

Disclaimer

• This presentation has been prepared by FAR Limited (‘FAR’). It should not be considered as an offer or invitation to subscribe for or purchase any shares in FAR or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for shares in FAR will be entered into on the basis of this presentation.

• This presentation contains forward-looking statements that are not based on historical fact, including those identified by the use of forward-looking terminology containing such words as ‘believes’, ‘may’, ‘will’, ‘estimates’, ‘continue’, ‘anticipates’, ‘intends’, ‘expects’, ‘should’, ‘schedule’, ‘program’, ‘potential’ or the negatives thereof and words of similar import.

• FAR cautions that these forward-looking statements are subject to risks and uncertainties that could cause actual events or results to differ materially from those expressed or implied by the statements. The forward looking statements are expressly subject to this caution. FAR makes no representation, warranty (express or implied), or assurance as to the completeness or accuracy of these forward-looking statements and, accordingly, expresses no opinion or any other form of assurance regarding them. FAR will not necessarily publish updates or revisions of these forwardlooking statements to reflect FAR’s circumstancesafter the date hereof.

• By its very nature exploration and development of oil and gas is high risk and is not suitable for certain investors. FAR shares are a speculative investment. There are a number of risks, both specific to FAR and of a general nature which may affect the future operating and financial performance of FAR and the value of an investment in FAR including and not limited to economic conditions, stock market fluctuations, oil and gas demand and price movements, regional infrastructure constraints, securing drilling rigs, timing of approvals from relevant authorities, regulatory risks, operational risks, reliance on key personnel, foreign currency fluctuations, and regional geopolitical risks.

• This presentation does not purport to be all inclusive or to contain all information which you may require in order to make an informed assessment of the Company’s prospects. You should conduct your own investigation, perform your own analysis, and seek your own advice from your professional adviser before making any investment decision.

• Cautionary Statement for Prospective Resource Estimates – With respect to the Prospective Resource estimates contained within this report, it should be noted that the estimated quantities of Petroleum that may potentially be recovered by the future application of a development project may relate to undiscovered accumulations. These estimates have an associated risk of discovery and risk of development. Further exploration and appraisal is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.

• Information in this report relating to hydrocarbon resource estimates has been compiled by Peter Nicholls, the FAR exploration manager. Mr Nicholls has over 30 years of experience in petroleum geophysics and geology and is a member of the American Association of Petroleum Geology, the Society of Exploration Geophysicists and the Petroleum Exploration Society of Australia. Mr Nicholls consents to the inclusion of the information in this report relating to hydrocarbon Prospective Resources in the form and context in which it appears. The Prospective Resource estimates contained in this report are in accordance with the standard definitions set out by the Society of Petroleum Engineers, Petroleum Resource Management System.

20